Back in Kyiv
19 January 2024
A Finnish business delegation visited Kyiv, Ukraine, in January to evaluate local investment needs and possibilities for cooperation with Ukrainian enterprises. Partner Klaus Ilmonen had the opportunity to participate in the trip set up by Miltton Ukraine.
“As Hannes Snellman at one point had offices in Kyiv, it was an excellent opportunity to reconnect – also, as there will be a need for significant reconstruction efforts, it is important to understand the relevant local and international legal frameworks early on”, Klaus Ilmonen explains.
Altogether, significant economic efforts are needed in Ukraine – both currently and over the longer term. There are immediate needs to be satisfied as regards social programmes, for example, as well as the on-going military efforts of Ukraine. In these sectors, there is demand and opportunities for immediate business propositions. As regards reconstruction and rebuilding, these efforts are likely to be planned in conjunction with Ukraine’s international partners as well as international institutions once the security situation has been stabilised on a more permanent basis. “It seems clear it will take time before businesses are ready to make significant in-country investments. Companies will also need certainty on the integrity of the investment process. Nevertheless, once circumstances allow, the amount of investments and work needed will be extraordinary. Ukraine’s location as an immediate EU neighbour facilitates access and offers possibilities for a number of different businesses,” Klaus continues.
Ukraine has adopted legal frameworks to reflect the on-going war. There are restrictions on currency exchange and foreign payments, including repatriation of dividend payments, for example. However, Ukraine has also adopted programmes to support foreign investments where qualifying projects can benefit from government support through tax exemptions of up to 30 per cent of the value of the investment projects. “We look forward to supporting our clients who are looking to engage in Ukraine with insights on local legal networks and international investment frameworks”, says Klaus Ilmonen and continues “importantly, the trip was also an opportunity to demonstrate our will to continue standing with Ukraine in these tough times – it was encouraging to see a lively Kyiv with Ukrainians continuing with their lives and businesses.”
Hannes Snellman, its partnership, and staff have supported humanitarian work in Ukraine throughout the ongoing war. Our support has been targeted at organisations, including UNICEF, the Red Cross, and Caravan to Ukraine who are offering invaluable support to Ukrainians in the disastrous situation.